Certified Public Accountants
& Business Consultants

Accounting & Auditing Alert August 2018


RubinBrown's Accounting & Auditing Alert is published monthly to inform our clients and contacts about relevant technical accounting and audit-related information.


FASB Issues Simplifications to Accounting for Nonemployee Share-Based Payments

The FASB has issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. Under the new guidance, the measurement and classification of nonemployee awards is generally aligned with the existing guidance for awards to employees.


FASB Clarifies and Improves Guidance for Not-For-Profit Grant and Contribution Accounting

The FASB recently issued ASU 2018-08, Not-For-Profit Entities: Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (Topic 958). This ASU is intended to address the diversity in practice that currently exists among not-for-profits regarding the characterization of grants and contributions as either exchange transactions or non-exchange transactions.


FASB Proposes Update to Definition of Collections

The FASB has issued an Exposure Draft that would update the definition of the term, “collection” within the Master Glossary of the Accounting Standards Codification so that it is consistent with the definition used in the American Alliance of Museums Code of Ethics for Museums.


GASB Establishes New Guidance on Capitalization of Interest Cost

The GASB has issued Statement No. 89 titled Accounting for Interest Cost Incurred before the End of a Construction Period. This statement is designed to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. It also simplifies accounting for interest cost incurred before the end of a construction period.


GASB Issues Implementation Guidance

The GASB recently issued GASB Implementation Guide No. 2018-1, Implementation Guidance Update – 2018. The GASB periodically issues implementation guidance to assist practitioners in implementing GASB Statements and to answer frequently asked questions.


Readers should not act upon information presented without individual professional consultation.